The U.S. Department of Labor’s (DOL) revised test for determining whether interns are employees under the Fair Labor Standards Act (FLSA) just turned one, and the summer hiring season is fast approaching. Misclassification can be costly for employers. Let’s make sure you understand and are correctly applying the DOL’s revised test for unpaid internships.
DOL Identifies 7 Factors for Determining ‘Primary Beneficiary’
A year ago, the DOL announced a new primary beneficiary test for determining whether interns are employees under the FLSA. The Act requires for-profit employers to pay employees for their work. Under the Act, “employ” means to “suffer or permit to work.” Based on that vague definition, interns and students may qualify as employees to whom compensation must be paid.
